Majority of Employers Want Minimum Wage Increase

Getty ImagesFast food workers rallying for an increase to their minimum wage.

By Debra Auerbach, CareerBuilder writer

A major economic issue in the spotlight due to the upcoming midterm elections is the debate over minimum wage. Proponents of a minimum wage increase say it will give a boost to the economy and consumer spending, while opponents believe it will weaken job growth because companies won't be able to hire as many workers.

While voters will have to wait to cast their ballot on the issue for a few more weeks, many employers are already voting "yes" for minimum wage increases, according to a new CareerBuilder survey. The survey found that 62 percent of employers think the minimum wage in their state should be increased, including 58 percent of company senior leaders.

Interestingly, employers currently hiring minimum wage workers are more likely to support a minimum wage increase than those who are not by an 11-point margin (70 percent vs. 59 percent).Finding a fair wage
While many employers support an increase in the minimum wage, they have varying opinions as to what the new wage should be, with some rallying behind not having a set number. While just 7 percent think a minimum wage of $15 per hour or more would be fair, 48 percent think a reasonable minimum wage should be set between $10 and $14 per hour.

$7.25 per hour (current federal minimum): 8 percent

$8.00 or $9.00 per hour: 29 percent

$10.00 per hour: 29 percent

$11.00-$14.00 per hour: 19 percent

$15.00 or more per hour: 7 percent

No set minimum wage: 9 percent

Increase vs. no increase: The ongoing debate
Employers advocating for a wage hike give the following reasons for their support:

It can improve the standard of living: 74 percent

It can have a positive effect on employee retention: 58 percent

It can help bolster economy: 55 percent

It can increase consumer spending: 53 percent

Employees may be more productive/deliver higher quality work: 48 percent

It can afford workers the opportunity to pursue more training or education: 39 percent

While employers on the other side of the debate believe increasing the minimum wage would trigger the following repercussions:

It can cause employers to hire less people: 66 percent

It can cause issues for small businesses struggling to get by: 65 percent

It can cause hikes in prices to offset labor costs: 62 percent

It can mean potential layoffs: 50 percent

It can lead to increased use of automation as a replacement for workers: 32 percent

Many minimum wage workers struggling
A separate sample found that 79 percent of full-time, non-management-level employees have worked in a minimum wage job in the past or are currently in a minimum wage job. Of these workers, 59 percent were not or are not able to make ends meet financially. That may have some influence on why recent national polls have shown support for increases among voters at large, and this survey shows that many businesses are right there with them.